If there is hardware failure it certainly can refuse to load the OS. I have seen it before, if wiping it and reinstalling wont work you are out of options, even if you were to manage just from sheer number of attempts to succeed, I would be weary that this device could quit on you at the drop of a hat.

So if I go to Nextel and tell them it wouldn't load the OS, what are they going to do? Will they replace it?